Aluminum Industry In 1994
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Title: Aluminum Industry In 1994

Essay Details:

Subject: Business
Author: Dexter M
Date: August 14, 2013
Level: University
Grade: A
Length: 6 / 1540

Essay text:

The industry is characterized by a large number of competing firms – the largest of which has only 4.1% of total industry capacity; homogeneous, commodity-type products and low-cost entry and exit into and out of the industry (assuming capital is available where returns are greater than cost of entry). Within the industry, market prices are established via a commodities exchange (the London Metal Exchange, or LME) and individual firms have little ability to set market prices. In a perfectly competitive industry social welfare is maximized – due largely to the lack of product differentiation and the number of competitors, while expected firm performance is normal...

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